Carroll moves to increase stake in Greencore

Multi-millionaire property developer Liam Carroll is moving to increase his stake in Greencore, the food company that has significant land assets in Carlow and in Mallow, Co Cork. Arthur Beesley, Senior Business Correspondent, reports.

A number of informed sources have speculated that Mr Carroll returned to the market for Greencore shares this week, his first foray since he spent €170 million last summer buying up the entirety of the 21.57 per cent stake held for years by billionaire investor Dermot Desmond.

His prime interest in Greencore lies in its property portfolio, which is the subject of long-term development plans. But renewed efforts to buy shares in the company come only a week after it reported a 38 per cent rise in interim pretax profits to €35.4 million in the period to March.

These first results since the termination of Greencore's sugar processing business underscore the strong performance of its convenience food unit, which Mr Carroll would be likely to sell off if he made a successful bid for the business at large.

Greencore shares have defied weakness in the Dublin market, which has dragged many Irish shares down this week. Its stock gained more than 3.5 per cent to close last night at €4.97 after some five million shares were traded. More than 17 million shares changed hands on Wednesday, a day in which the Irish market lost 2.5 per cent.

It is understood NCB Stockbrokers, through which Mr Carroll bought Mr Desmond's shares, has been in the market for Greencore shares in recent days. However, the broker declined to comment.

Bank of Ireland Asset Management, owner of 5.9 per cent of Greencore, and a US institution called Millgate, owner of a smaller stake, are believed to have sold shares in recent days.

In a statement to the Irish Stock Exchange last night, Deutsche Bank and some of its subsidiaries said they had accumulated a notifiable interest in 5.03 per cent of Greencore by buying up more than 10 million shares.

The bank said some of its companies acting as fund managers "hold some of the shares on behalf of a number of clients whose portfolios are managed on a discretionary basis". It was not immediately clear whether Deutsche was acting for Mr Carroll or any of his commercial interests.

Asked about suggestions he had increased his stake above 29 per cent, Mr Carroll said: "I have no comment to make and I don't know if your facts are correct. I have no further comment to make."

Mr Carroll has never made any public comment on his Greencore investment or any part of his empire. Greencore's market capitalisation stood at €989.82 million last night, valuing his original stake at €213.5 million and implying a paper profit of €43.5 million on his first investment.

Among Ireland's wealthiest developers, Mr Carroll revealed in a Companies Office filing last year that the net assets held by 66 of his operating companies were valued at €779.19 million at the end of 2005. His holding company, Zelderbridge, declared profits of €28 million that year.

Mr Carroll's bought into Greencore as it made plans to leave the sugar business. Its defunct plants at Carlow and Mallow are the subject of rezoning applications to local authorities. Greencore would not discuss renewed interest in its stock, stating that its policy was not to comment.